Rental income 1099 misc?

[Anonymous]

I've been renting our house in another state while living in VA. We paid our agent $800 finders fee for replacement tenants and less than $150/mo as management fee (handles any issues with renters). Do I need to file a 1099? I have to dig back to see if my husband filed one last year, but if we did file one for her last year and do not file one this year do we get dinged for any reason?

We have FT jobs in IT and real estate is not our business by any means but heard there some sort of need to file 1099 if we pay anyone over $500 a year for a service. So should we file something for 2015? Thoughts welcome!

[Anonymous]

Yes, you do. The threshold is $600. And also, you want to deduct those expenses to offset the rental income. Be sure you understand how to claim the depreciation as well (and remember, you'll owe a 25% recapture tax on the accumulated depreciation some day when you sell it, assuming you don't do a like-kind 1031 exchange).

[Anonymous]

Anonymous wrote:Yes, you do. The threshold is $600. And also, you want to deduct those expenses to offset the rental income. Be sure you understand how to claim the depreciation as well (and remember, you'll owe a 25% recapture tax on the accumulated depreciation some day when you sell it, assuming you don't do a like-kind 1031 exchange).

Thank you! I'm not aware of this recapture tax? Assume as long as I keep records of all rental expenses and income I should be able to figure it out? We've had the house for 4 years and rented it out for 2. I've only been using Turbo Tax for filings but maybe should try to find an accountant if/when we plan to sell?